SB 0960 - Fiscal Note

Fiscal Note - SB 0960 - Life Ins. Policy May Restrict Liab. For Suicide For 2 Years

L.R. NO.  3574-01
BILL NO.  SB 960
SUBJECT:  Insurance-Life, Department of Insurance, Suicide
TYPE:     Original
DATE:     March 19, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

Insurance
Dedicated                  $35,000

Total Estimated
Net Effect on All
State Funds                $35,000                  $0                $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

Local Government                $0                  $0                $0



                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Insurance (INS) stated that there are
approximately 700 life insurers conducting business in the state of Missouri.
The life insurers would submit package policy form filings which would
include the basic policy format in addition to endorsements, amendments and
policy riders.  Each package policy form filing would be accompanied with a
$50 filing fee. The review of these package filings would be one-time revenue
and a one-time review process, therefore, INS is requesting a full-time
professional position for one year only. One Insurance Product Analyst II
would review all package policy form filings for compliance to the new
statutory requirements.

Oversight assumes the passage of this proposal would not increase cost to
INS; however,  revenue of $35,000 in the first fiscal year only would be
realized. In addition,  passage of  more than one similar proposal could
require the INS to request increased appropriations to cover cumulative
administrative costs.

Officials from the Department of Conservation (MDC), Department of Public
Safety (DPS), Department of Highway and Transportation (DHT), Local Area
Governments Employees Retirement System (LAG), and the Missouri Sheriffs
Association stated that passage of this legislation would have no fiscal
impact on their agencies.

Officials from the Missouri State Employees Retirement System (MOS) and the
Public School Retirement System (PSR) did not respond to our fiscal impact
request.

FISCAL IMPACT - State Government    FY 1997   FY 1998   FY 1999
                                   (10 Mo.)

INSURANCE DEDICATED FUND

  Income - Department of Insurance

  Policy Filing Fees                $35,000        $0        $0

  Estimated Net Effect on Insurance $35,000        $0   $0
  Dedicated Fund


FISCAL IMPACT - Local Government    FY 1997   FY 1998   FY 1999
                                   (10 Mo.)

                                         $0        $0        $0

DESCRIPTION

This act allows life insurers to exclude liability if the insured commits
suicide within 2 years of the date of  issuance of the policy.  The insurer
is required to refund all  premiums paid on the policy.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.

SOURCES OF INFORMATION

Department of Insurance
Department of Conservation
Department of Public Safety
Department of Highway and Transportation
Missouri Local Government Employees Retirement System
Missouri Sheriffs Association

Not Responding: Missouri State Employees Retirement System, Public School
Retirement System